During 2021, Erin Corporation had 9,000,000 shares of common stock and 500,000 shares of 6% preferred stock outstanding. The preferred stock does not have cumulative or convertible features. Erin declared and paid cash dividends of $3,000,000 and $1,500,000 to common and preferred shareholders, respectively, during 2021. On January 1, 2020, Erin issued $20,000,000 of convertible 5% bonds at face value. Each $1,000 bond is convertible into five common shares. Erin's net income for the year ended December 31, 2021, was $60 million. The income tax rate is 20%. 20. What is Erin's basic earnings per share for 2021, rounded to the nearest cent? a. $5.29. b. $5.57. c. $6.50. d. None of these answer choices is correct. 21. What will Erin report as diluted earnings per share for 2021, rounded to the nearest cent? a. $6.43. b. $6.25. c. $6.22. d. None of these answer choices is correct.
During 2021, Erin Corporation had 9,000,000 shares of common stock and 500,000 shares
of 6%
convertible features. Erin declared and paid cash dividends of $3,000,000 and $1,500,000
to common and preferred shareholders, respectively, during 2021.
On January 1, 2020, Erin issued $20,000,000 of convertible 5%
$1,000 bond is convertible into five common shares.
Erin's net income for the year ended December 31, 2021, was $60 million. The income tax
rate is 20%.
20. What is Erin's basic earnings per share for 2021, rounded to the
nearest cent?
a. $5.29.
b. $5.57.
c. $6.50.
d. None of these answer choices is correct.
21. What will Erin report as diluted earnings per share for 2021, rounded to the
nearest cent?
a. $6.43.
b. $6.25.
c. $6.22.
d. None of these answer choices is correct.
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